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Ridiculous considering India's NPCI processes $6B USD in 400M transactions a day at a modest operating revenue of < $0.5M USD a day! This is a clear situation
by potamic 3y ago
Ridiculous considering India's NPCI processes $6B USD in 400M transactions a day at a modest operating revenue of < $0.5M USD a day!
This is a clear situation where the market is inefficient.
- umeshunni 3y agoNPCI is state funded and runs at a loss. i.e. your taxes are paying for it.
- potamic 3y agoThey're definitely not running at a loss, 40% profit margin in fact. It's also not the full picture to call them state funded. They're owned by a consortium of banks, both private and public. While the state maintains a level of ownership through their equity in public banks, the company itself is self- sustainable from an operations point of view.
- umeshunni 3y agoSorry, I meant that UPI is running at a loss and is subsidized. https://bfsi.economictimes.indiatimes.com/news/fintech/upi-transactions-are-rising-but-who-will-foot-the-bill/94032077 https://bfsi.economictimes.indiatimes.com/news/fintech/upi-t... The government gives Rs 1,300 crore as subsidy Unsurprisingly, there is now a 1.1% interchange on some UPI transactions now: https://www.onmanorama.com/news/business/2023/03/31/upi-transactions-wallets-charge-npci.html https://www.onmanorama.com/news/business/2023/03/31/upi-tran... Separately, NCPI's revenues are USD ~2B/year: https://www.icra.in/Rationale/ShowRationaleReport/?Id=122149#:~:text=Healthy%20financial%20risk%20profile%20%E2%80%93%20NPCI,a%20net%20worth%20of%20Rs https://www.icra.in/Rationale/ShowRationaleReport/?Id=122149....